Emerging markets boost worldwide demand

As discussed in new study World Paints & Coatings, a bright outlook is forecast for the paint and coatings market worldwide through 2020, buoyed by
strong economic growth in developing regions. Heightened income levels in emerging markets will
continue to boost the ranks of the working and middle classes, driving new demand for housing, as
well as fueling higher frequencies of paint use. Expanding manufacturing sectors and
infrastructure investment will spur sales of industrial coatings utilized in the production and
upkeep of motor vehicles, furniture, marine vessels, and roads and bridges.

India to post fastest gains, while demand in China remains strong

Freedonia Group projects that of the major paint and coatings markets worldwide, the best opportunities are forecast for India,
where paint use will be fueled by rapidly expanding investment to build or update homes,
businesses, and industrial facilities. In China, which alone accounts for nearly one-third of the
global market, a growing middle class will continue to boost demand for higher quality products,
while solid gains in manufacturing output are expected to drive industrial coatings sales. Among
developed nations, the US will post the best performance as building construction activity and
fixed investment spending advance at a solid pace. Western Europe is expected to see a turnaround in
paint sales, spurred by improved economic output and a recovering construction sector.

Emissions regulations continue to shape industry

Coatings suppliers worldwide will continue to reduce the volatile organic compound (VOC) content
of their products due to intensifying regulatory pressure. As a result, water-based paints and powder
coatings will gain market share at the expense of solvent-based products, especially in countries
such as China, where environmental legislation is becoming increasingly strict. Nonetheless,
solventborne formulations will continue to dominate a number of specialty applications, including
marine coatings, automotive refinishes, and corrosion protection coating.

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A complete brochure for this Freedonia research is available for download.